AUD/USD pares intraday gains, struggles to find acceptance above 0.7100 mark

AUD/USD gained some positive traction on Monday, albeit lacked bullish conviction.
Retreating US bond yields undermined the USD and extended support to the major.
The cautious market mood capped any further gains for the perceived riskier aussie.

Haresh Menghani FXStreet

The AUD/USD pair maintained its bid tone through the first half of the European session and was last seen hovering near the top end of its daily trading range, just below the 0.7100 mark.

The pair attracted fresh buying on the first day of a new week and built on Friday's late bounce from the 0.7050 area, or a multi-day low touched in the reaction to the stellar US NFP print. As investors digested mostly upbeat US employment details, retreating US Treasury bond yields undermined the US dollar and extended some support to the AUD/USD pair.

The uptick, however, struggled to find acceptance above the 0.7100 mark amid the prevalent cautious market mood, which tends to weigh on the perceived riskier aussie. Apart from this, speculations for a larger Fed rate hike move at the March policy meeting acted as a tailwind for the USD and capped any meaningful upside for the AUD/USD pair, at least for now.

Investors now seem convinced that the Fed would adopt a more aggressive policy response to contain stubbornly high inflation. Hence, the market focus now shifts to the release of the US CPI report for January, due on Thursday. The data will play a key role in influencing the USD price dynamics and help determine the near-term trajectory for the AUD/USD pair.

In the meantime, the US bond yields will drive the USD demand amid absent relevant market-moving economic releases on Monday. Apart from this, traders will take cues from the broader market risk sentiment for some short-term opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.7094
Today Daily Change	0.0019
Today Daily Change %	0.27
Today daily open	0.7075

Trends
Daily SMA20	0.7158
Daily SMA50	0.7163
Daily SMA100	0.7253
Daily SMA200	0.738

Levels
Previous Daily High	0.7153
Previous Daily Low	0.7051
Previous Weekly High	0.7168
Previous Weekly Low	0.6985
Previous Monthly High	0.7315
Previous Monthly Low	0.6966
Daily Fibonacci 38.2%	0.709
Daily Fibonacci 61.8%	0.7114
Daily Pivot Point S1	0.7033
Daily Pivot Point S2	0.6991
Daily Pivot Point S3	0.6931
Daily Pivot Point R1	0.7135
Daily Pivot Point R2	0.7195
Daily Pivot Point R3	0.7237

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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